California Tax Overview
California has the highest top marginal income tax rate in the nation at 13.3%, applying to income over $1 million. The state uses 10 tax brackets for its progressive system, and an additional 1% mental health services tax applies to income above $1 million. Despite high taxes, California remains the largest state economy in the U.S.
California Tax Quick Facts (2026)
| Income Tax | progressive (top rate: 13.3%) |
| Sales Tax (State) | 7.25% |
| Property Tax (Avg Effective) | 0.71% |
| Median Household Income | $91,905 |
| Capital | Sacramento |
| Population | 39.0 million |
California Income Tax Brackets (2026)
| Income Range | Tax Rate |
|---|---|
| $0 β $10,412 | 1.00% |
| $10,412 β $24,684 | 2.00% |
| $24,684 β $38,959 | 4.00% |
| $38,959 β $54,081 | 6.00% |
| $54,081 β $68,350 | 8.00% |
| $68,350 β $349,137 | 9.30% |
| $349,137 β $418,961 | 10.30% |
| $418,961 β $698,271 | 11.30% |
| $698,271 β $1,000,000 | 12.30% |
| $1,000,000+ | 13.30% |
Frequently Asked Questions About California Taxes
Does California have a state income tax?+
Yes, California has a progressive income tax system with a top marginal rate of 13.3%.
What is the property tax rate in California?+
The average effective property tax rate in California is approximately 0.71% of assessed home value. On a $300,000 home, that is about $2,130 per year.
What is the sales tax rate in California?+
The state sales tax rate in California is 7.25%. Local jurisdictions may add additional sales tax.
What is the median household income in California?+
The median household income in California is approximately $91,905 per year.
How does California's tax burden compare to other states?+
California's total tax burden depends on income tax, property tax, and sales tax combined. Use the calculator above to compare your specific situation.
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James Whitfield, CPA, MST
James Whitfield is a Certified Public Accountant with a Master of Science in Taxation. He specializes in US federal and state tax calculations and ensures all tax-related tools meet current IRS guidelines. Last updated: April 2026. Uses 2026 tax year data from state revenue departments and IRS publications.